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Home prices continue slow climb

Posted by Mehran Aram on Sun, Aug 11, 2019 @ 08:08 AM

The pace of home sales in the U.S. has remained largely flat for the better part of 2019 but that hasn’t kept prices from continuing their upward journey. While the rate at which prices are climbing has slowed, single-family home prices nationwide remain at an all-time high. According to CoreLogic’s Home Price Index and HPI Forecast for June 2019, home prices in the U.S. are 3.4 percent higher than they were during the same month last year.

Prices also increased on a monthly basis, rising by 0.4 percent from May to June. CoreLogic predicts that the cost of a home will continue to rise as well. Experts anticipate another 5.2 percent increase over the next year.

Increases in home prices in the lower-end of the market are especially challenging for first-time buyers, however, mortgage rate near historic lows could help make monthly mortgage payments more affordable.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home sales, home prices, CoreLogic, single family homes, Mortgage rates, June Home Prices

Home affordability improving thanks to low rates

Posted by Mehran Aram on Wed, Aug 7, 2019 @ 06:08 AM

Recent declines in mortgage rates has created millions more potential home buyers. In a new edition of Black Knight’s Mortgage Monitor report, the drop in rates has made home affordability the best it has been in 18 months.

Although home prices continue to increase, less expensive borrowing costs can be an offset. Even small drops in mortgage rates can make a monthly mortgage payment more affordable for home buyers. Black Knight reports that while the average home price has increased by $12,000 since interest rates peaked last November, monthly payments have declined $108 as rates began to retreat.

Lower mortgage rates could spur an increase in home sales as house hunters have more buying power.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home prices, Interest Rates, Black Knight, Mortgage rates, home affordability, home buyers, Affordability, Borrowing Costs, Monthly Mortgage Payments

Home sales fall more than expected

Posted by Mehran Aram on Sat, Jul 27, 2019 @ 05:07 AM

Sales of previously owned homes in the U.S. decline last month, marking the sixteenth consecutive month of year-over-year declines. High home prices and low inventory continues to keep potential home buyers on the sidelines. The 1.7 percent monthly drop in home sales in June is far greater than the 0.6 percent decline predicted by economists in a survey by The Wall Street Journal.

Although the rate at which home prices are rising has slowed over the past year, the median home price in the U.S. remains 4.3 percent higher than the same month in 2018. Prices for existing single-family homes have climbed every month for the past 88 months.

Driving prices higher is the short-supply of homes on the market. Inventory levels were at 4.4 months nationally. Experts cite 6 months as a healthy supply.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home sales, home prices, Mortgage rates, median home price, Low Inventory

Homeowners staying put longer than ever

Posted by Mehran Aram on Fri, Jul 26, 2019 @ 09:07 AM

American homeowners are choosing to live in their homes longer than ever before. The average tenure surpassed eight years in Q2 of 2019 – a record high. This is nearly double the length of time homeowners held on to their property before the Great Recession when the average tenure was near 4.21 years. This latest data is from ATTOM Data Solutions.

High home prices are the main culprit behind the lengthening tenancy. Homeowners are hanging onto their properties longer, likely hoping that sooner or later prices will cool.

San Francisco had the longest tenure in the nation with homeowners residing in their homes an average of 10.26 years.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home prices, homeowners, homeownership, Mortgage rates, ATTOM Data Solutions

San Diego housing market appears to be cooling off

Posted by Mehran Aram on Wed, Jul 24, 2019 @ 05:07 AM

It may be summer in America’s Finest City but that’s not keeping the housing market sizzling. Home price growth in San Diego has begun to level off compared to the steep price increases seen last summer.

Median home prices in San Diego are still climbing but over the past twelve months it has been a quite modest 1.9 percent increase, according to Zillow. The online real estate site expects the tepid growth to continue through next year.

With home prices leveling off and mortgage rates at their lowest levels in over a year, demand for housing in San Diego is expected to remain strong through 2020.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: San Diego County, home prices, San Diego, Zillow, Mortgage rates, San Diego Housing Market, median home price, San Diego Home Prices, Americas Finest City, San Diego Median Home Price, San Diego Housing

Home prices beyond affordable

Posted by Mehran Aram on Mon, Jul 8, 2019 @ 09:07 AM

The gap between what homebuyers want to pay for a home and what a home costs appears to be growing. A study conducted by Realtor.com found that, nationally, half of today’s house-hunters are looking to purchase a property for under $288,000. But that’s a 9.1 percent gap or $27,000 less than the median national home price.

Experts boil the dilemma down to the basic economic principle of supply and demand. There simply aren’t enough homes on the market that the average American can afford to buy. Although inventory is growing, it’s doing as at the top of the market – home's priced above $750,000.

“Entry-level homes continue to be difficult to come by as the inventory composition shifts more and more toward higher prices homes,” said Danielle Hale, chief economist for Realtor.com. “This is causing smaller and more affordable homes to appreciate rapidly, resulting in a mismatch between what buyers are able to spend and what sellers expect to receive.”

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home prices, home purchase, homebuyers, Mortgage rates, Realtor.com, Realtors, median home price, Affordability, home inventory

Home price growth slows in April

Posted by Mehran Aram on Fri, Jun 28, 2019 @ 06:06 AM

The rate at which home prices in the U.S. continued to decline in April, the latest in a series of indicators that conditions are slowly changing to a buyers’ market. Average home prices rose 3.5 percent in April compared to the same month last year, down from 3.7 percent in March and 3.9 percent in February. This latest data comes from the S&P CoreLogic Case-Shiller National Home Price Index.

Market experts are describing the slowdown as a moderation after years of rapid acceleration in home values that priced out many would-be home buyers. The effect of the more moderate price growth coupled with low mortgage rates was seen last month in a uptick in existing home sales as reported by the National Association of Realtors.

It is expected that buyers will continue to enjoy more modest price increases and low mortgage rates for the foreseeable future.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home prices, National Association of Realtors, Mortgage rates, S&P CoreLogic Case Shiller, Price Increases

Home flipping activity at 9-year high

Posted by Mehran Aram on Fri, Jun 14, 2019 @ 06:06 AM

The volume of home flipping is at its highest level since 2010, suggesting that investors are not at all deterred by high home prices. The resurgence of home flipping is seen as positive by industry experts who say the practice helps alleviate housing shortages and brings upgraded homes onto the market, while some claim it can drive prices artificially high.

Homes flipped in the first quarter of 2019 represented 7.2 percent of all home sales during the quarter – up from 5.9 percent the previous quarter and up from 6.7 percent a year ago. Home flipping is the purchase of and subsequent sale of a property within 12 months. Investors often make renovations to the home and then sell it for a profit.

High home prices are taking their toll on returns, however, with the average gross profit during Q1 at $60,000 – down from $62,000 in the previous quarter and $68,000 in Q1 2018.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home prices, Mortgage rates, housing shortage, Home Flipping, House Flip

Cease-fire in bidding wars

Posted by Mehran Aram on Thu, Jun 13, 2019 @ 05:06 AM

In just the latest sign that the housing market may be cooling slightly, CoreLogic has released new data that shows the volume of bidding wars taking place has returned to “normal levels”. The number of homes that are selling above their list price, driven by multiple prospective buyers offering competing bids, has dropped a similar rate as the historic norms seen in 2000 and 2001.

Thirty-one percent of homes that sold in March went above their asking price. This is down from the peak of 40 percent reached in the second quarter of 2018.

Home prices are reaching the upper limits of buyers’ budgets, preventing them from upping their offers. In San Diego, 28 percent of homes sold above the original list price while 30 percent sold below the list price.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home prices, CoreLogic, Mortgage rates, San Diego Housing Market, bidding war

Home Purchase Sentiment near record high

Posted by Mehran Aram on Wed, Jun 12, 2019 @ 06:06 AM

Exactly one year after setting a record high, Fannie Mae’s Home Purchase Sentiment has nearly done it again. The HSPI for May 2019 had a reading of 92.0, just shy of matching the all-time high reached in May 2018 of 92.3, largely because of a substantial 13-point increase in the number of Americans who believe now is a good time to buy a home.

In addition to respondents becoming decidedly more convinced that market conditions are ripe to buy a home, consumers also believe that home prices would increase in the near-future while mortgage rates would decline.

Meanwhile, the net share of respondents who believe now is a good time to sell home a declined 3-points from the same month last year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home prices, home purchase, Fannie Mae, Mortgage rates, Home Purchase Sentiment